1042787--4/3/2006--NORTH_ATLANTIC_TRADING_CO

related topics

{debt, indebtedness, cash}

{product, liability, claim}

{product, market, service}

{customer, product, revenue}

{regulation, change, law}

{financial, litigation, operation}

{personnel, key, retain}

{investment, property, distribution}

{cost, operation, labor}

{stock, price, operating}

{property, intellectual, protect}

{acquisition, growth, future}

{competitive, industry, competition}

Risks Related to Legal and Regulatory Compliance The Company is subject to substantial and increasing regulation which could adversely affect demand for its tobacco products. Competition from other tobacco companies could adversely affect the Company. Sales of tobacco products are generally expected to continue to decline, which could have a material adverse effect on the Company s revenues and cash flows. Increased excise taxes on tobacco products could have a material adverse effect on the Company s results of operations, financial position and cash flows. The Company may not be able to develop, produce or commercialize competitive new products and technologies required by regulatory changes or changes in consumer preferences. Risks Related to the Company s Business Infringement of the Company s intellectual property may affect its results of operations, financial position and cash flows. The outcome of material litigation, if determined adversely to the Company, could have a material adverse effect on its results of operations, financial position and cash flows. The departure of key management personnel could adversely affect the Company s operations. The Company s failure to manage growth could adversely affect its business. The Company is subject to risks inherent in new product development initiatives. The Company may be unsuccessful in maintaining the consumer brand loyalty of its products. The Company may face delays in obtaining tobacco, other raw materials and finished products manufactured for the Company. The Company s principal stockholder can exercise significant influence over it and his interests may conflict with that of its investors. The Company employee base includes manufacturing personnel covered by collective bargaining agreements. Risks Related to the New Senior Notes The Company s substantial debt could adversely affect its results of operations, financial position and cash flows and prevent the Company from fulfilling its obligations under the New Senior Notes. The Company may incur additional debt in the future, which could increase the noteholders credit risk. The Company s operations will be substantially restricted by the terms of its debt, which could adversely affect its operating and financing flexibility. The New Senior Notes are unsecured and thus subordinated to the Company s secured debt. Under specific circumstances, federal and state statutes allow courts to void guarantees and require noteholders to return payments received from guarantors. The Company may not be able to satisfy its obligations to the noteholders upon a change of control.

Full 10-K form ▸

1042787--4/3/2006--NORTH_ATLANTIC_TRADING_CO_INC